With the Archer Materials (ASX:AXE) share price up 222% this year, what's next?

The Archer Materials share price has seen gains of 222% since the first trading day of 2020. Here's the latest from the company…

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published December 16, 2020 5:14 pm AEDT

The Archer Materials Ltd (ASX: AXE) share price was off to a great start this year, gaining more than 52% in January.

By 17 April, though, Archer had given all those gains back and was again trading at 16 cents per share.

With hindsight as our guide, that would have been an excellent time to pick up some shares. Since 17 April (and thus since 2 January) Archer's share price is up 222% to 52 cents per share at close of trade today. By comparison the All Ordinaries Index (ASX: XAO) is up just under 2% so far in 2020.

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium — Image source: Getty Images

What's next for Archer Materials?

In a progress report released to the ASX today, Archer reported that the South Australian government has given the green light on its Program for Environment Protection and Rehabilitation (PEPR) for the company's Campoona Graphite Project.

Archer revealed it can collect a bulk sample up to 60 tonnes. The sample will be processed off-site, including into graphite and graphene materials. This will enable small-scale initial testing of the company's graphite materials for end-uses such as lithium-ion batteries.

Commenting on PEPR approval, Archer Materials chair Greg English said:

The approval of PEPR is a significant achievement and another step forward in the de-risking of the Campoona Graphite Project. With the forecast near-term growth in lithium-ion battery demand and forecast increase in graphite prices, the timing of the PEPR approval could not have been better. The next steps towards production involve finding a partner or buyer of the Campoona Graphite Project.

According to the company, the graphite at Campoona is "structurally near perfect" and it can be integrated in scalable lithium-ion batteries.

After gaining 2% earlier today, Archer Materials' share price closed flat.

Archer Materials company snapshot

Archer Materials develops and integrates materials to address complex global challenges in quantum technology, human health, and reliable energy. The company works to develop advanced materials to build disruptive technology. Its materials include carbon-based qubits for quantum computing, graphene-enhanced biosensors and graphitic battery anodes.

Archer's Australian-based mineral exploration projects span critical minerals like graphite, copper, tungsten, cobalt, and more. Archer Materials' shares first began trading on the ASX in August 2007.

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